Please select your home edition
Edition
SW newsletters (top)




Collinson FX: December 24, 2019 - Santa Claus rally underway in US

by Collinson FX 23 Dec 2019 23:55 PST 24 December 2019
Charlotte Dobsob and Saskia Tidey (GBR) winners of the Medal Race - 49er FX - Hyunsai Worlds - December 2019 © Richard Gladwell / Sail-World.com

Collinson FX: December 24, 2019 - Santa Claus rally underway

US equity markets charged into the ‘Santa Claus Rally’, spurred on by the growing global trade prospects, as China announce reduced tariffs on more than 850 imports. The ‘Phase One’ trade agreement has been cited and now President Trump looks likely to welcome the newly re-elected UK PM Boris Johnson, with a ‘Super Trade Agreement’ in the offing. Global trade has boosted an already booming US economy and this is likely to spread across the integrated markets. The tortured Brexit is to be completed early in the new year, but a trade agreement is yet to be finalised, raising fears of a ‘no deal’ which has spooked the GBP traders. The GBP rallied to above 1.3400, in the wake of the Conservatives victory in the ‘Brexit’ election, but the recent controversy has pushed the GBP back below 1.3000. The EUR suffers in communion, falling back to 1.1080, but long term fortunes are likely to be even more troubled.

The global trade scenario is feeding the trade exposed, commodity currencies. The AUD has pushed up to 0.6915, while the NZD is trading 0.6625, both enhanced by the trade developments and the Chinese supply chain. Markets in the US close at lunch time on Xmas eve, so the promise of a massive rally into the close of the 2019 year, is likely.

Collinson FX: December 23, 2019 - US markets close on record highs

US equity markets closed the week, breaking further record highs. President Trump tweeted he had ‘a very good talk with President Xi’, confirming the ‘Phase One’ trade agreement was already under way and that progress was being made on Hong Kong! Markets blasted into yet more record highs confirming the ‘Santa Rally’. In the UK, the newly re-elected PM Boris Johnson tested his new massive majority in the British Parliament, passing legislation for Brexit. The GBP remains under pressure, trading 1.3030, as negotiations with the EU over Brexit and a trade deal enter unsettled territory, while the EUR fell to 1.1070.

Commodity currencies have gained from progress on global trade and improving local economic data. The AUD is now testing 0.6900, while the NZD attempts to regain 0.6600, as economic sentiment improves. The US/China trade deal settles existing supply chains, while the mouth watering prospects of UK trade deals with Australia and NZ, bring exciting prospects for the coming year.

Christmas week will see much reduced trading volumes, as the world celebrates the holiday season. The ‘Santa Rally’ is ‘icing on the cake’ for equity markets and the coming week will be one of positive reflection and speculation for what 2020 holds!?

Catch the new look Collinson FX website at www.collinsonco.com

Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Related Articles

Collinson FX: Dec 29 - More helicopter money
The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus and equities rallied strongly. Posted on 28 Dec 2020
Collinson FX: Dec 3 - Australia on improve
Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contractio Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contraction to 3.8%. Posted on 3 Dec 2020
Collinson FX: Vaccine Rally stalls
Growth will continue to be challenged, as the recent European lock-downs, feed through to the data Growth will continue to be challenged, as the recent European lock-downs, feed through to the economic data. Posted on 18 Nov 2020
Collinson FX: Oct 19 - Election win anticipated
The election victory was anticipated by markets, but the magnitude of the victory was not. Labour won the NZ election in a landslide. The victory was anticipated by markets, but the magnitude of the victory was not. Posted on 19 Oct 2020
Collinson FX: Oct 14 - Drop expected post-Election
NZ House prices surged, due to lack of supply and cheap mortgages. Credit card spending surges NZ House prices surged, due to lack of supply and cheap mortgages, leading to a surge in credit card spending. The local election on Saturday should provide further downward pressures coming to bear. Posted on 14 Oct 2020
Collinson FX: Oct 6 - Oz tax cuts expected sooner
Australia is expected to bring forward tax cuts and other stimulus measures Equities opened the week strongly, after the shock hospitalisation of President Trump, last week and his subsequent recovery Posted on 6 Oct 2020
Collinson FX: Sept 18 - NZ in deep recession
NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. The Fed also assured markets that interest rates would remain at historical low levels, for years to come, encouraging investors. NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. Posted on 18 Sep 2020
Collinson FX: Sept 4 - US markets blow out
Australian trade data revealed a sharp increase in imports, accentuating a trade imbalance US Equity markets experienced a ‘blowout correction' overnight, lead by a crash in ‘stay-at-home' tech shares. This may a bit of a flash in the pan or, if extended, may become a significant market correction. Posted on 4 Sep 2020
Collinson FX: August 20 - China US election issue
The AUD fell back below 0.7200, while the NZD traded 0.6570, both being impacted by lock downs Maersk, the largest shipping company in the world, reported much better than expected earnings. This is a great sign for global trade, as the economic recovery progresses forward. Posted on 20 Aug 2020
Collinson FX: August 5 - Global equities climb
Australian downturn not as bad as expected, but Victorian lockdown has a ‘major impact' AUD trading up to 0.7150, while the NZD tests 0.6600 on the downside. RBA Governor said that the economic downturn was not as severe as originally feared, but warned the Victorian lockdown was having a ‘major impact'. Posted on 5 Aug 2020
MBW newsletters (top)